V.F. Corp’s Price Target Boosted at Piper Jaffray (VFC)

in Gold Gold Investment by admin — March 4, 2010 7:22 am | no comments

Branded apparel maker V.F. Corporation ( VFC ) on Thursday saw its price target raised by analysts at Piper Jaffray. The analyst boosted its price target for VFC shares, which had closed at $77.85 on Wednesday, to $86 from $80. Jaffray also maintained its “Overweight” rating on the stock, citing expectations of higher margins and valuation. The firm noted that “Recent travel with management confirms our thesis on shares for potential margin expansion through a higher mix of international retail revenues and increased penetration of lifestyle brands. We believe management remains acutely focused on generating strong cash flow from “heritage businesses” while re-investing in its faster growing lifestyle brands with global appeal as well as actively seeking new brands to leverage on the current infrastructure…Price Target of $86 based on 15x FY10E EPS of $5.70…We are raising our multiple from 14x to 15x given potential upside from international retail, accelerating outdoor coalition, and stabilizing domestic business.” V.F. Corp shares were mostly flat in premarket trading Thursday. The Bottom Line We have been recommending shares of VFC since Oct.19, when the stock was trading at $76.14. The company has a 3.08% dividend yield, based on last night’s closing stock price of $77.85. V.F. Corporation ( VFC ) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .